TCS reports 13% rise in Q1 net profit

Country's largest software services exporter, Tata Consultancy Services (TCS) , on Thursday beat estimates as net profit rose 13 per cent with an operating margin of Rs 6,724 crore in the first quarter.

Net profit rose to Rs 5,709 crore for its fiscal first quarter to June 30, TCS said in a statement.

The revenue for Q1 came in at Rs 25,668 crore, up 16.1% YoY and 6.0% QoQ. The net income was reported at Rs 5,708 crore.

In terms of Geographical growth North America stood out as the best performer with a growth of 52.8 per cent from the last quarter while its southern counterpart, Latin America turned out to be the worst performer with just of 1.9 per cent of growth. TCS, CEO & TCS MD, N Chandrasekaran said this demand from core markets as North America and greater traction for digital solutions has driven volumes and growth in June quarter.

As for domain growth the BFSI sector raked up the highest growth numbers rising a stupendous 40.6 per cent followed way behind by Retail and distribution at 13.6 per cent and manufacturing at 10.2 per cent. The domain with the least amount of growth was Media & Entertainment with just about a 2.7% growth rate.

In terms of manpower the company made a gross addition of 20,302 associates with a closing headcount of 3,24,935. Of the gross additions 6,425 trainees & 9,337 laterals  were in India and 4,540 employees were hired for overseas locations.

The company announced an interim dividend of Rs 5.50 per share. The attrition rate during the quarter for the company stood at 15.9%, one of the highest for TCS in the recent past. The big positive however was volume growth of 4.8%

As for the market scene, the company's stock fell by 2.80% to settle at Rs 2,521.40 on BSE and at the NSE, the stock slipped 2.79% to Rs 2,522.50.

($1 = Rs 63.4100 )